Brockway, PE orcid.org/0000-0001-6925-8040, Heun, MK, Santos, J et al. (1 more author) (2017) Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation. Energies, 10 (2). 202. ISSN 1996-1073
Abstract
Capital–labour–energy Constant Elasticity of Substitution (CES) production functions and their estimated parameters now form a key part of energy–economy models which inform energy and emissions policy. However, the collation and guidance as to the specification and estimation choices involved with such energy-extended CES functions is disparate. This risks poorly specified and estimated CES functions, with knock-on implications for downstream energy–economic models and climate policy. In response, as a first step, this paper assembles in one place the major considerations involved in the empirical estimation of these CES functions. Discussions of the choices and their implications lead to recommendations for CES empiricists. The extensive bibliography allows those interested to dig deeper into any aspect of the CES parameter estimation process.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Editors: |
|
Copyright, Publisher and Additional Information: | (c) 2017 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/). |
Keywords: | CES production function; econometrics; Estimation; elasticity of substitution; energy policy; energy |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > School of Earth and Environment (Leeds) > Sustainability Research Institute (SRI) (Leeds) |
Funding Information: | Funder Grant number EPSRC EP/L024756/1 |
Depositing User: | Symplectic Publications |
Date Deposited: | 14 Feb 2017 12:25 |
Last Modified: | 05 Oct 2017 16:09 |
Published Version: | https://doi.org/10.3390/en10020202 |
Status: | Published |
Publisher: | MDPI |
Identification Number: | 10.3390/en10020202 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:112314 |